In the current environment, business planning has become an increasingly important component of helping business owners set a course of action that has purpose.
Successful business owners will plan, revisit the plan and change the plan in response to changing market conditions. And in times of uncertainty, they will run alternative scenarios to help build a picture of where their business might be heading.
Forecasting is a financial tool that can assist business owners in formulating their plans by providing valuable insights into profitability, financial stabiltiy and the future cash position of their business. The information gleaned from robust forecasts can help business owners make decisions and facilitate sound financial management that improves business outcomes.
Robust financial forecasting can help improve how a business manages:
• Its assessment of expansion, diversifcation or improvement strategies
• Staffing, including when to recruit, roll out training programmes or use contractors during busy periods